Pg 42

Question 1

What is the common law rule against perpetuities?

Answer 1

No interest is good unless it must vest or fail not later than 21 years after some life in being at the creation of the interest [or the point when the interest becomes irrevocable]

Question 2

Essentially what does RAP require?

Answer 2

All interests, whether they are in trust or otherwise, must vest or fail [in either interest or possession] within the lives of everyone who could possibly have been known to the donor [lives in being] plus the minority of the next generation [21 years]. Essentially within 21 years after the death of someone that was alive when the interest was created, the interest must definitely vest or fail to vest. If an interest does this, it is good.

Question 3

What is the situation not to get tricked about with regard to RAP?

Answer 3

Sometimes an interest vests immediately but possession doesn’t until later. Don’t get tricked, because this interest has vested.

Question 4

What is the date that RAP goes from?

Answer 4

– will: date of the testator’s death

– trust: date that the interest becomes irrevocable

Question 5

What type of interest does RAP apply to?

Answer 5

Only future interests. This is for trusts and sequential property interests, but not for anything else. It only impacts contingent interests, because vested interests are fine.

Question 6

What is the rationale behind RAP?

Answer 6

It is meant to prevent excessive control over the future destiny of property and to prevent future interests from vesting too far in the future. It limits how far out someone can control property.

Question 7

What are the two basic purposes of RAP ?

Answer 7

• to prevent the tying up of land indefinitely

– to facilitate alienation

Question 8

Where does RAP most often come up?

Answer 8

With regard to trusts

Question 9

Under RAP, any interest that MIGHT not vest or fail within the perpetuities period is what?

Answer 9

Void from the outset, no matter how implausible the possibility

Question 10

What are examples of things under RAP that make it so that the interest might not vest or fail within the perpetuities period, so they are void from the outset?

Answer 10

– fertile octogenarian
– unborn widow
– slothful executor

Question 11

Who must the life in being be with regard to RAP?

Answer 11

Must be someone that is referenced in the document that is already alive when the interest is created [means either at the testator‘s death if it is a will or the time the interest became irrevocable if it is a trust).

Question 12

For a life in being, do they have to be referenced expressly in the instrument that creates the interest?

Answer 12

No, they can be determined by implication if they were referenced implicitly in the instrument. The person doesn’t have to be named, but someone else must be able to determine whether anyone can be a life and being

Question 13

What are requirements to be a life in being for RAP?

Answer 13

– must be alive when the interest is created (this can sometimes be a time later than when the document is executed)
– can be anyone, not just blood relatives
– any age is fine

Question 14

For a revocable trust, at what point must the life in being actually be in being?

Answer 14

When the power to revoke terminates

Question 15

What is the reasoning behind the 21 year portion of RAP?

Answer 15

The reasoning was that fathers were worried that property would be inherited by an incompetent or unworthy son. For living people, the father can pass judgment, but for unborn people that isn’t possible

Question 16

The 21 year period for RAP actually includes what?

Answer 16

21 years plus the gestation period

Question 17

On an essay, do you consider RAP when there is one generation and a payout?

Answer 17

No, but you can bring it up there only to shoot it down

Question 18

If there are two generations of beneficiaries that precede the payout, should you consider RAP?

Answer 18

No, but you can talk about it on an essay and then shut it down

Question 19

What is the situation that you should watch carefully for and always consider RAP for?

Answer 19

If there are three or more generations

Question 20

What are the major questions to ask before considering RAP?

Answer 20

Two WHENS and one WHO:
– WHEN 1: is the interest vested at the moment of the interest’s creation? If yes, RAP does not apply. If no…
– WHEN 2: from when do we measure the lives? Start at the moment of creation of the interest.
– WHO: who are the measuring lives?

Question 21

If you have a life estate or any presently possessory interest such as a fee simple determinable, is that vested or unvested?

Answer 21

Vested

Question 22

Are defeasible fees considered vested or unvested?

Answer 22

Vested because even though they are subject to divestiture, they are presently possessory interests

Question 23

If a life estate follows another life estate, is that vested?

Answer 23

Yes

Question 24

Are remainders considered to be vested?

Answer 24

Yes, because the person before them WILL die

Question 25

What are things that are not vested?

Answer 25

Future interests that are subject to contingencies

Question 26

When is a gift considered to be vested?

Answer 26

At the moment of transfer

Question 27

What are the categories of measuring lives for our RAP?

Answer 27

– preceding life tenant
- beneficiary
- ancestor of a beneficiary
– any person that can affect a condition precedent attached to the gift
– class gifts